Deltona Corp. v. United States

The Court of Claims holds that the Army Corps of Engineers' denial of dredge and fill permits for completion of a planned residential development on Florida's Marco Island does not constitute a taking under the Fifth Amendment. Plaintiff acquired its Marco Island property in 1964 and received the permits necessary to develop three of its five areas. In 1976, however, the Corps denied permits necessary to develop the mangrove wetlands of the remaining two areas under § 10 of the Rivers and Harbors Act and § 404 of the Federal Water Pollution Control Act Amendments of 1972. The court holds that frustration of investment-backed expectations does not establish a taking where there is only a diminution of value, so long as legitimate governmental interests are advanced and the owner is not denied economically viable use of his land. Since the Corps' permit standards advance important federal interests and plaintiff's land retains substantial economic value for development of upland portions, no taking is established.